Wynn Profit Tops Street On Macau Growth

(RTTNews) - Casino operator Wynn Resorts Ltd (WYNN), Thursday reported a better-than-expected increase in first-quarter profit amid growth at its Macau operations, while its properties in Las Vegas edged down.

Wynn and its bigger rival Las Vegas Sands Corp (LVS) have been seeing strong gains from their operations in Macau, the only place in China where casinos are legal.

Macau has flourished as a casino hub as customers splurge on table games and slotting machines as well as spend on food and accommodation.

Wynn, based in Las Vegas, posted first-quarter net earnings of $226.9 million or $2.22 per share, compared with $203 million or $2 per share last year.

Excluding items, adjusted earnings for the quarter were $236.7 million or $2.32 per share, compared with $205.6 million or $2.03 per share a year ago.

On average, 19 analysts polled by Thomson Reuters estimated earnings of $2.07 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter climbed to $1.51 billion from $1.38 billion in the prior year. Seventeen analysts had a consensus revenue estimate of $1.49 billion for the quarter.

Revenue in Macau grew 14.2 percent from last year, while Las Vegas operations edged down 1.5 percent.

In Macau, Wynn's table games turnover in the VIP segment increased 26.7 percent and wins in this segment were 2.79 percent.

Table games win in the mass market segment in Macau grew 23.7 percent, and slot machine handle was up 25.3 percent.

Wynn is currently constructing Wynn Palace, a $4 billion integrated resort on Cotai in Macau. The resort is expected to open in the first half of 2016.

Wynn also declared a quarterly cash dividend of $1.25 per share.

Last Thursday, Las Vegas Sands reported a near 36 percent jump in quarterly profit, on growth in Macau, with results topping Wall Street estimates.

Wynn stock closed Thursday at $206.63, up $2.74 or 1.34%, on a volume of 2.3 million shares on the Nasdaq. In after hours, the stock gained $3.75 or 1.81% at $210.38. In the past year, the stock has traded in the range of $121.84 - $249.31.